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The San Francisco based popular cloud storage and file synchronization service ’Dropbox,’has initiated its initial public offering. The March 23rd IPO is considered to be the biggest since Snapchat went public. Following that Dropbox has gone the way of IQ Option apparently making it possible for traders to start trading this CFD right away.
Initially starting at just $21 the company saw its share prices increase by as much as 35%. And according to many, there is a lot of potential remaining. Currently estimated at $11 billion, and just around 11 years old, this is a very interesting CFD.
How will Dropbox do against the big boys?
Dropbox will soon be battling for supremacy against heavyweights like Microsoft and Google. Interestingly out of 11 million Dropbox subscribers just 30% operate business accounts. Plus many will willingly shift to a newer and cheaper provider when that opportunity arrives.
Since cloud storage is a huge part of Dropbox’s business model, the fact that it is becoming cheaper each year means that the company could see its primary source of income erode over time. Furthermore, Dropbox has not turned a profit for many years.
Wallstreet traders and day traders alike have mixed views about the CFD and its future. Dropbox shares may have climbed to $31, but it soon lost 8% and settled at $30 a few days later. Many traders are positive that it will rise again.
Spotify will soon be tradable on IQ Option
Spotify announced its IPO late March, hot on the heels of Dropbox’s announcement. As a trader, this is an exciting move since Spotify is estimated to become much bigger in coming months. Plus its appearance on IQ Option’s platform will help give it a much-needed boost.
Spotify is a broadcast, music, and video streaming service making it possible to access all the content you want online without having to download or buy it. Though users are charged a subscription fee. 70% of Spotify’s revenue goes to right holders.
What should traders expect?
Spotify is estimated to be worth $20 billion at the moment. Its executives believe that 2018 will see the company’s losses shrink as their margins improve. The company also hopes to break the $6.5 billion mark by increasing sales which will be accomplished by reaching 200 million users. So, in other words, if they are successful, there will be a 20% to 30% increase.
However, only time will tell which way this IPO swings. Though it does offer traders an excellent opportunity to invest in a solid tech company.
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